The Comparisons with 2020 are Getting More Similar by the Day
- The comparisons we have been making with today’s situation…to that of 2020…are getting more similar by the day. (They both had a strong rally that pushed the stock market into expensive/overbought levels…with a possible large negative catalyst on the horizon.)
- This week is going to be incredibly important, but we most of any significant movement we’ll see this week will almost certainly come over the last three days…given that the big announcements don’t come until after the close on Tuesday.
- If the big-tech earnings do beat expectations…and the Treasury continues to fund their debt with shorter-term securities…and the Fed gives a further green light to investors in terms of speculation and leverage…the stock market could rally significantly further into the first part of February (just like it did in 2020)…….If not, this overbought stock market should pullback.